Twitter set to accept Musk’s $43 billion ‘best and final’ offer: Reports
Twitter is nearing a deal to sell itself to Tesla CEO Elon Musk for $54.20 per share in cash, according to an exclusive report from Reuters, citing people familiar with the matter. The amount is the same as what Musk originally offered to the social media company and called his ‘best and final.’
The sources also told Reuters that Twitter may announce the $43 billion deal later on Monday once its board has met to recommend the transaction to Twitter shareholders. But the sources cautioned that it is possible that the deal may collapse at the last minute. Twitter and Musk did not immediately respond to requests for comment.
On April 14, Musk offered to buy 100 percent of Twitter for $54.20 per share ($41.39 billion) in cash, according to the updated 13D filing with the Securities and Exchange Commission (SEC). The announcement came just a few days after Musk declined to join Twitter’s board after he bought a 9.2% stake in the company.
However, a day later, Twitter’s Board adopted a “poison pill” strategy to block Elon Musk from taking over the social media platform. The “poison pill,” as it’s called in corporate terms, gives Twitter’s existing shareholders time to purchase additional shares at a discount, thereby diluting Elon Musk’s ownership stake in the company.
On March 26, Musk hinted at launching his own social media platform due to Twitter’s failure to promote free speech. Then in a follow-up tweet, Elon Musk told his 79 million Twitter followers that he’s giving “serious thought” to the idea of creating his own social media platform. The revelation came after Musk’s friend Pranay Pathole asked in a tweet if Musk would consider building a new social media platform.
Musk, 50, polled his more than 80 million followers on Twitter last month, asking them whether the company adheres to the principles of free speech. After more than 70% said no, he asked whether a new platform was needed and said he was giving serious thought to starting his own.
Musk’s friend, Pranay Pathole, asked in a tweet if Musk would consider building a new social media platform.
“Would you consider building a new social media platform, @elonmusk ? One that would consist an open source algorithm, one where free speech and adhering to free speech is given top priority, one where propaganda is very minimal. I think that kind of a platform is needed.”
Musk responded, “Am giving serious thought to this.”
Would you consider building a new social media platform, @elonmusk? One that would consist an open source algorithm, one where free speech and adhering to free speech is given top priority, one where propaganda is very minimal. I think that kind of a platform is needed.
— Pranay Pathole (@PPathole) March 26, 2022
Meanwhile, it all started on March 24, when Musk first asserted that the “Twitter algorithm should be open source.” Twitter founder, Jack Dorsey, immediately responded by saying that “the choice of which algorithm to use (or not) should be open to everyone.”